State of Illinois
92nd General Assembly
Legislation

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92_HB0521eng

 
HB0521 Engrossed                               LRB9204399JSpc

 1        AN ACT concerning health coverage  under  State  employee
 2    programs.

 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:

 5        Section 5.  The State Employees Group  Insurance  Act  of
 6    1971  is  amended by changing Sections 2, 3, 10, 13.2, and 15
 7    as follows:

 8        (5 ILCS 375/2) (from Ch. 127, par. 522)
 9        Sec. 2. Purpose.  The purpose of this Act is to provide a
10    program of group life insurance, a program of health benefits
11    and other employee benefits for persons in the service of the
12    State of Illinois, employees of local governments,  employees
13    of   rehabilitation  facilities  and  employees  of  domestic
14    violence  shelters  and  services,  and  certain   of   their
15    dependents.   It is also the purpose of this Act to provide a
16    program of health benefits (i) for certain benefit recipients
17    of the Teachers' Retirement System of the State  of  Illinois
18    and  their  dependent  beneficiaries  and  (ii)  for  certain
19    eligible   retired  community  college  employees  and  their
20    dependent beneficiaries.  It is also the purpose of this  Act
21    to  provide  a  program of health benefits for (i) owners and
22    employees of qualified small businesses and their  dependents
23    and (ii) self-employed persons and their dependents.
24    (Source: P.A. 89-25, eff. 6-21-95; 90-497, eff. 8-18-97.)

25        (5 ILCS 375/3) (from Ch. 127, par. 523)
26        Sec.   3.  Definitions.   Unless  the  context  otherwise
27    requires, the following words and phrases as used in this Act
28    shall have the following meanings.  The Department may define
29    these and other words and phrases separately for the  purpose
30    of  implementing  specific  programs providing benefits under
 
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 1    this Act.
 2        (a)  "Administrative  service  organization"  means   any
 3    person,  firm  or  corporation experienced in the handling of
 4    claims  which  is  fully  qualified,  financially  sound  and
 5    capable of meeting the service requirements of a contract  of
 6    administration executed with the Department.
 7        (b)  "Annuitant"  means  (1)  an employee who retires, or
 8    has retired, on or after January  1,  1966  on  an  immediate
 9    annuity under the provisions of Articles 2, 14, 15 (including
10    an  employee  who  has  retired under the optional retirement
11    program established under Section 15-158.2), paragraphs  (2),
12    (3),  or (5) of Section 16-106, or Article 18 of the Illinois
13    Pension  Code;  (2)  any  person  who  was  receiving   group
14    insurance  coverage  under  this  Act as of March 31, 1978 by
15    reason of his status as an annuitant, even though the annuity
16    in  relation  to  which  such  coverage  was  provided  is  a
17    proportional annuity based on less than the minimum period of
18    service required for  a  retirement  annuity  in  the  system
19    involved;  (3)  any  person not otherwise covered by this Act
20    who has retired as a participating member under Article 2  of
21    the   Illinois   Pension  Code  but  is  ineligible  for  the
22    retirement  annuity  under  Section  2-119  of  the  Illinois
23    Pension Code; (4) the spouse of any person who is receiving a
24    retirement annuity under Article 18 of the  Illinois  Pension
25    Code  and  who  is  covered  under  a  group health insurance
26    program sponsored by a governmental employer other  than  the
27    State  of  Illinois  and who has irrevocably elected to waive
28    his or her coverage under this Act and to  have  his  or  her
29    spouse  considered  as the "annuitant" under this Act and not
30    as a "dependent"; or (5) an  employee  who  retires,  or  has
31    retired,  from  a qualified position, as determined according
32    to rules promulgated by the Director, under a qualified local
33    government  or  a  qualified  rehabilitation  facility  or  a
34    qualified domestic violence shelter or  service;  or  (6)  an
 
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 1    owner  or  employee  who  retires,  or  has  retired,  from a
 2    qualified  position,  as  determined   according   to   rules
 3    promulgated  by the Director, with a qualified small business
 4    or as  self-employed  person.  (For  definition  of  "retired
 5    employee", see (p) post).
 6        (b-5)  "New  SERS  annuitant"  means  a person who, on or
 7    after January 1, 1998, becomes an annuitant,  as  defined  in
 8    subsection   (b),   by  virtue  of  beginning  to  receive  a
 9    retirement annuity under Article 14 of the  Illinois  Pension
10    Code,  and is eligible to participate in the basic program of
11    group health benefits provided for annuitants under this Act.
12        (b-6)  "New SURS annuitant" means a person who (1) on  or
13    after  January  1,  1998, becomes an annuitant, as defined in
14    subsection  (b),  by  virtue  of  beginning  to   receive   a
15    retirement  annuity  under Article 15 of the Illinois Pension
16    Code, (2) has not made the election authorized under  Section
17    15-135.1 of the Illinois Pension Code, and (3) is eligible to
18    participate  in  the  basic  program of group health benefits
19    provided for annuitants under this Act.
20        (b-7)  "New TRS State annuitant" means a person  who,  on
21    or  after  July  1, 1998, becomes an annuitant, as defined in
22    subsection  (b),  by  virtue  of  beginning  to   receive   a
23    retirement  annuity  under Article 16 of the Illinois Pension
24    Code based on service as a teacher as  defined  in  paragraph
25    (2),  (3),  or  (5)  of  Section  16-106 of that Code, and is
26    eligible to participate in the basic program of group  health
27    benefits provided for annuitants under this Act.
28        (c)  "Carrier"   means   (1)   an  insurance  company,  a
29    corporation  organized  under  the  Limited  Health   Service
30    Organization Act or the Voluntary Health Services Plan Act, a
31    partnership,  or other nongovernmental organization, which is
32    authorized  to  do  group  life  or  group  health  insurance
33    business in Illinois, or (2)  the  State  of  Illinois  as  a
34    self-insurer.
 
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 1        (d)  "Compensation"  means  salary  or wages payable on a
 2    regular payroll by the State Treasurer on a  warrant  of  the
 3    State Comptroller out of any State, trust or federal fund, or
 4    by  the Governor of the State through a disbursing officer of
 5    the State out of a trust or out of federal funds, or  by  any
 6    Department  out  of State, trust, federal or other funds held
 7    by the State Treasurer or the Department, to any  person  for
 8    personal   services  currently  performed,  and  ordinary  or
 9    accidental disability  benefits  under  Articles  2,  14,  15
10    (including  ordinary  or accidental disability benefits under
11    the optional retirement  program  established  under  Section
12    15-158.2),  paragraphs (2), (3), or (5) of Section 16-106, or
13    Article 18 of  the  Illinois  Pension  Code,  for  disability
14    incurred after January 1, 1966, or benefits payable under the
15    Workers'   Compensation   or  Occupational  Diseases  Act  or
16    benefits  payable  under  a  sick  pay  plan  established  in
17    accordance  with  Section  36  of  the  State  Finance   Act.
18    "Compensation" also means salary or wages paid to an employee
19    of any qualified local government or qualified rehabilitation
20    facility or a qualified domestic violence shelter or service.
21    "Compensation" also means salary or wages paid to an employee
22    or  owner  of  a  qualified  small business and earned income
23    earned by a self-employed person.
24        (e)  "Commission"  means  the   State   Employees   Group
25    Insurance   Advisory   Commission  authorized  by  this  Act.
26    Commencing July 1, 1984, "Commission" as  used  in  this  Act
27    means   the   Illinois  Economic  and  Fiscal  Commission  as
28    established by the Legislative Commission Reorganization  Act
29    of 1984.
30        (f)  "Contributory",  when  referred  to  as contributory
31    coverage, shall mean optional coverages or  benefits  elected
32    by  the  member  toward  the  cost of which such member makes
33    contribution, or which are funded in whole or in part through
34    the acceptance of a reduction in earnings or the foregoing of
 
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 1    an increase in earnings by an employee, as distinguished from
 2    noncontributory coverage or benefits which are paid  entirely
 3    by  the  State  of Illinois without reduction of the member's
 4    salary.
 5        (g)  "Department"  means  any  department,   institution,
 6    board,  commission, officer, court or any agency of the State
 7    government  receiving  appropriations  and  having  power  to
 8    certify payrolls to the Comptroller authorizing  payments  of
 9    salary  and  wages against such appropriations as are made by
10    the General Assembly from any State fund,  or  against  trust
11    funds  held  by  the  State  Treasurer and includes boards of
12    trustees of the retirement systems created by Articles 2, 14,
13    15, 16 and 18 of the  Illinois  Pension  Code.   "Department"
14    also  includes  the  Illinois  Comprehensive Health Insurance
15    Board, the Board of Examiners established under the  Illinois
16    Public Accounting Act, and the Illinois Rural Bond Bank.
17        (h)  "Dependent", when the term is used in the context of
18    the  health  and  life  plan, means a member's spouse and any
19    unmarried child (1) from birth to age 19 including an adopted
20    child, a child who lives with the member from the time of the
21    filing of a petition for adoption until entry of an order  of
22    adoption,  a stepchild or recognized child who lives with the
23    member in a parent-child relationship, or a child  who  lives
24    with  the member if such member is a court appointed guardian
25    of the child, or (2) age 19 to 23  enrolled  as  a  full-time
26    student  in any accredited school, financially dependent upon
27    the member, and eligible to be claimed  as  a  dependent  for
28    income tax purposes, or (3) age 19 or over who is mentally or
29    physically  handicapped.  For  the health plan only, the term
30    "dependent" also includes any person enrolled  prior  to  the
31    effective  date  of  this  Section  who is dependent upon the
32    member to the extent that the member may claim such person as
33    a dependent for income tax deduction purposes; no other  such
34    person may be enrolled.
 
HB0521 Engrossed            -6-                LRB9204399JSpc
 1        (i)  "Director"   means  the  Director  of  the  Illinois
 2    Department of Central Management Services.
 3        (j)  "Eligibility period" means  the  period  of  time  a
 4    member  has  to  elect  enrollment  in  programs or to select
 5    benefits without regard to age, sex or health.
 6        (k)  "Employee"  means  and  includes  each  officer   or
 7    employee  in the service of a department who (1) receives his
 8    compensation for service rendered  to  the  department  on  a
 9    warrant   issued   pursuant  to  a  payroll  certified  by  a
10    department or on a warrant or check issued  and  drawn  by  a
11    department  upon  a  trust,  federal  or  other  fund or on a
12    warrant issued pursuant to a payroll certified by an  elected
13    or  duly  appointed  officer  of  the  State  or who receives
14    payment of the performance of personal services on a  warrant
15    issued  pursuant  to  a payroll certified by a Department and
16    drawn by the Comptroller upon  the  State  Treasurer  against
17    appropriations  made by the General Assembly from any fund or
18    against trust funds held by the State Treasurer, and  (2)  is
19    employed  full-time  or  part-time  in  a  position  normally
20    requiring actual performance of duty during not less than 1/2
21    of  a  normal  work period, as established by the Director in
22    cooperation with each department, except that persons elected
23    by popular vote  will  be  considered  employees  during  the
24    entire  term  for  which they are elected regardless of hours
25    devoted to the service of the  State,  and  (3)  except  that
26    "employee" does not include any person who is not eligible by
27    reason  of  such person's employment to participate in one of
28    the State retirement systems under Articles 2, 14, 15 (either
29    the regular Article 15  system  or  the  optional  retirement
30    program  established  under Section 15-158.2) or 18, or under
31    paragraph (2), (3), or (5) of Section 16-106, of the Illinois
32    Pension Code, but such term  does  include  persons  who  are
33    employed  during  the 6 month qualifying period under Article
34    14 of the Illinois Pension Code.  Such term also includes any
 
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 1    person who (1) after January 1, 1966, is  receiving  ordinary
 2    or  accidental  disability  benefits under Articles 2, 14, 15
 3    (including ordinary or accidental disability  benefits  under
 4    the  optional  retirement  program  established under Section
 5    15-158.2), paragraphs (2), (3), or (5) of Section 16-106,  or
 6    Article  18  of  the  Illinois  Pension  Code, for disability
 7    incurred after January 1, 1966, (2) receives total  permanent
 8    or total temporary disability under the Workers' Compensation
 9    Act  or  Occupational  Disease  Act  as  a result of injuries
10    sustained or illness contracted in the course  of  employment
11    with  the  State of Illinois, or (3) is not otherwise covered
12    under this Act and has  retired  as  a  participating  member
13    under   Article  2  of  the  Illinois  Pension  Code  but  is
14    ineligible for the retirement annuity under Section 2-119  of
15    the  Illinois  Pension Code.  However, a person who satisfies
16    the criteria of the foregoing definition of "employee" except
17    that such person is made ineligible  to  participate  in  the
18    State   Universities  Retirement  System  by  clause  (4)  of
19    subsection (a) of Section 15-107 of the Illinois Pension Code
20    is  also  an  "employee"  for  the  purposes  of  this   Act.
21    "Employee" also includes any person receiving or eligible for
22    benefits under a sick pay plan established in accordance with
23    Section 36 of the State Finance Act. "Employee" also includes
24    each  officer or employee in the service of a qualified local
25    government,  including  persons  appointed  as  trustees   of
26    sanitary districts regardless of hours devoted to the service
27    of the sanitary district, and each employee in the service of
28    a   qualified  rehabilitation  facility  and  each  full-time
29    employee in the service  of  a  qualified  domestic  violence
30    shelter   or   service,  as  determined  according  to  rules
31    promulgated by the  Director.  "Employee"  also  includes  an
32    owner  and a full-time employee in the service of a qualified
33    small business and  a  self-employed  person,  as  determined
34    according to rules promulgated by the Director.
 
HB0521 Engrossed            -8-                LRB9204399JSpc
 1        (l)  "Member"   means  an  employee,  annuitant,  retired
 2    employee or survivor.
 3        (m)  "Optional  coverages  or   benefits"   means   those
 4    coverages  or  benefits available to the member on his or her
 5    voluntary election, and at his or her own expense.
 6        (n)  "Program" means the  group  life  insurance,  health
 7    benefits  and other employee benefits designed and contracted
 8    for by the Director under this Act.
 9        (o)  "Health  plan"  means  a  health  benefits   program
10    offered by the State of Illinois for persons eligible for the
11    plan.
12        (p)  "Retired  employee" means any person who would be an
13    annuitant as that term is defined herein  but  for  the  fact
14    that such person retired prior to January 1, 1966.  Such term
15    also  includes any person formerly employed by the University
16    of Illinois in the Cooperative Extension Service who would be
17    an annuitant but for the  fact  that  such  person  was  made
18    ineligible   to   participate   in   the  State  Universities
19    Retirement System by clause (4) of subsection (a) of  Section
20    15-107 of the Illinois Pension Code.
21        (q)  "Survivor"  means a person receiving an annuity as a
22    survivor of an employee or of an annuitant.  "Survivor"  also
23    includes:  (1)  the  surviving  dependent  of  a  person  who
24    satisfies  the  definition  of  "employee"  except  that such
25    person  is  made  ineligible  to  participate  in  the  State
26    Universities Retirement System by clause  (4)  of  subsection
27    (a)  of  Section 15-107 of the Illinois Pension Code; and (2)
28    the surviving dependent of any person  formerly  employed  by
29    the  University  of  Illinois  in  the  Cooperative Extension
30    Service who would be an annuitant except for  the  fact  that
31    such  person  was made ineligible to participate in the State
32    Universities Retirement System by clause  (4)  of  subsection
33    (a) of Section 15-107 of the Illinois Pension Code.
34        (q-5)  "New  SERS  survivor" means a survivor, as defined
 
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 1    in subsection (q), whose annuity is paid under Article 14  of
 2    the Illinois Pension Code and is based on the death of (i) an
 3    employee  whose  death occurs on or after January 1, 1998, or
 4    (ii) a new SERS annuitant as defined in subsection (b-5).
 5        (q-6)  "New SURS survivor" means a survivor,  as  defined
 6    in  subsection (q), whose annuity is paid under Article 15 of
 7    the Illinois Pension Code and is based on the death of (i) an
 8    employee whose death occurs on or after January 1,  1998,  or
 9    (ii) a new SURS annuitant as defined in subsection (b-6).
10        (q-7)  "New  TRS  State  survivor"  means  a survivor, as
11    defined in  subsection  (q),  whose  annuity  is  paid  under
12    Article  16  of the Illinois Pension Code and is based on the
13    death of (i) an employee who  is  a  teacher  as  defined  in
14    paragraph (2), (3), or (5) of Section 16-106 of that Code and
15    whose  death  occurs  on or after July 1, 1998, or (ii) a new
16    TRS State annuitant as defined in subsection (b-7).
17        (r)  "Medical  services"  means  the  services   provided
18    within  the  scope  of their licenses by practitioners in all
19    categories licensed under the Medical Practice Act of 1987.
20        (s)  "Unit  of  local  government"  means   any   county,
21    municipality,  township, school district, special district or
22    other unit, designated as a unit of local government by  law,
23    which  exercises  limited  governmental  powers  or powers in
24    respect to limited governmental subjects, any  not-for-profit
25    association   with   a  membership  that  primarily  includes
26    townships  and  township  officials,  that  has  duties  that
27    include  provision  of  research  service,  dissemination  of
28    information, and other acts  for  the  purpose  of  improving
29    township  government,  and that is funded wholly or partly in
30    accordance with Section  85-15  of  the  Township  Code;  any
31    not-for-profit  corporation or association, with a membership
32    consisting primarily of municipalities, that operates its own
33    utility   system,   and    provides    research,    training,
34    dissemination  of  information,  or  other  acts  to  promote
 
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 1    cooperation  between  and  among  municipalities that provide
 2    utility services and for the advancement  of  the  goals  and
 3    purposes  of its membership; the Southern Illinois Collegiate
 4    Common Market, which is  a  consortium  of  higher  education
 5    institutions   in   Southern   Illinois;   and  the  Illinois
 6    Association of Park Districts.  "Qualified local  government"
 7    means a unit of local government approved by the Director and
 8    participating  in  a  program created under subsection (i) of
 9    Section 10 of this Act.
10        (t)  "Qualified  rehabilitation   facility"   means   any
11    not-for-profit   organization   that  is  accredited  by  the
12    Commission on Accreditation of Rehabilitation  Facilities  or
13    certified  by  the Department of Human Services (as successor
14    to  the  Department  of  Mental  Health   and   Developmental
15    Disabilities)   to   provide   services   to   persons   with
16    disabilities  and  which  receives  funds  from  the State of
17    Illinois  for  providing  those  services,  approved  by  the
18    Director  and  participating  in  a  program  created   under
19    subsection (j) of Section 10 of this Act.
20        (u)  "Qualified  domestic  violence  shelter  or service"
21    means any Illinois domestic violence shelter or  service  and
22    its  administrative offices funded by the Department of Human
23    Services (as successor to the Illinois Department  of  Public
24    Aid), approved by the Director and participating in a program
25    created under subsection (k) of Section 10.
26        (v)  "TRS benefit recipient" means a person who:
27             (1)  is  not  a "member" as defined in this Section;
28        and
29             (2)  is receiving a monthly  benefit  or  retirement
30        annuity  under  Article  16 of the Illinois Pension Code;
31        and
32             (3)  either (i) has at least 8 years  of  creditable
33        service under Article 16 of the Illinois Pension Code, or
34        (ii) was enrolled in the health insurance program offered
 
HB0521 Engrossed            -11-               LRB9204399JSpc
 1        under  that  Article  on January 1, 1996, or (iii) is the
 2        survivor of a benefit recipient who had at least 8  years
 3        of  creditable  service  under Article 16 of the Illinois
 4        Pension Code or was  enrolled  in  the  health  insurance
 5        program  offered under that Article on the effective date
 6        of this amendatory Act of 1995, or (iv) is a recipient or
 7        survivor of a recipient of  a  disability  benefit  under
 8        Article 16 of the Illinois Pension Code.
 9        (w)  "TRS dependent beneficiary" means a person who:
10             (1)  is  not a "member" or "dependent" as defined in
11        this Section; and
12             (2)  is a TRS benefit recipient's: (A)  spouse,  (B)
13        dependent parent who is receiving at least half of his or
14        her  support  from  the  TRS  benefit  recipient,  or (C)
15        unmarried natural or adopted child who is (i)  under  age
16        19,  or  (ii)  enrolled  as  a  full-time  student  in an
17        accredited school, financially  dependent  upon  the  TRS
18        benefit  recipient, eligible to be claimed as a dependent
19        for income tax purposes, and either is under  age  24  or
20        was,  on  January  1,  1996, participating as a dependent
21        beneficiary in the health insurance program offered under
22        Article 16 of the Illinois Pension Code, or (iii) age  19
23        or over who is mentally or physically handicapped.
24        (x)  "Military  leave  with  pay  and benefits" refers to
25    individuals in basic training for reserves,  special/advanced
26    training,  annual  training, emergency call up, or activation
27    by the President of the United States with approved  pay  and
28    benefits.
29        (y)  "Military  leave without pay and benefits" refers to
30    individuals who enlist for active duty in a regular component
31    of the U.S. Armed Forces  or  other  duty  not  specified  or
32    authorized under military leave with pay and benefits.
33        (z)  "Community college benefit recipient" means a person
34    who:
 
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 1             (1)  is  not  a "member" as defined in this Section;
 2        and
 3             (2)  is receiving a monthly  survivor's  annuity  or
 4        retirement  annuity  under  Article  15  of  the Illinois
 5        Pension Code; and
 6             (3)  either  (i)  was  a  full-time  employee  of  a
 7        community college district or an association of community
 8        college boards created under the Public Community College
 9        Act (other than an employee  whose  last  employer  under
10        Article  15  of the Illinois Pension Code was a community
11        college district subject to Article  VII  of  the  Public
12        Community College Act) and was eligible to participate in
13        a  group  health  benefit  plan as an employee during the
14        time of employment  with  a  community  college  district
15        (other  than  a  community  college  district  subject to
16        Article VII of the Public Community College  Act)  or  an
17        association  of  community college boards, or (ii) is the
18        survivor of a person described in item (i).
19        (aa)  "Community college dependent beneficiary"  means  a
20    person who:
21             (1)  is  not a "member" or "dependent" as defined in
22        this Section; and
23             (2)  is a community college benefit recipient's: (A)
24        spouse, (B) dependent parent who is  receiving  at  least
25        half  of  his  or  her support from the community college
26        benefit recipient, or (C) unmarried  natural  or  adopted
27        child  who  is  (i)  under  age 19, or (ii) enrolled as a
28        full-time student in an  accredited  school,  financially
29        dependent  upon  the community college benefit recipient,
30        eligible to be claimed as  a  dependent  for  income  tax
31        purposes  and  under  age 23, or (iii) age 19 or over and
32        mentally or physically handicapped.
33        (bb)  "Qualified  small  business"   means   a   business
34    situated  in  Illinois having 25 or fewer employees, approved
 
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 1    by the Director and participating in a program created  under
 2    subsection (k-5) of Section 10.
 3        (cc)  "Self-employed  person" means a person engaged in a
 4    business enterprise as  a  self-employed  person  or  who  is
 5    conducting another self-employed occupation or profession and
 6    is  participating in a program created under subsection (k-5)
 7    of Section 10.
 8    (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
 9    eff. 8-16-97; 90-497, eff.  8-18-97;  90-511,  eff.  8-22-97;
10    90-582,  eff.  5-27-98;  90-655,  eff.  7-30-98; 91-390, eff.
11    7-30-99; 91-395, eff. 7-30-99; 91-617, eff, 8-19-99;  revised
12    10-19-99.)

13        (5 ILCS 375/10) (from Ch. 127, par. 530)
14        Sec. 10. Payments by State; premiums.
15        (a)  The    State   shall   pay   the   cost   of   basic
16    non-contributory group life insurance and, subject to  member
17    paid  contributions set by the Department or required by this
18    Section, the basic program of group health benefits  on  each
19    eligible  member,  except  a member, not otherwise covered by
20    this Act, who has retired as  a  participating  member  under
21    Article  2 of the Illinois Pension Code but is ineligible for
22    the retirement annuity under Section 2-119  of  the  Illinois
23    Pension  Code, and part of each eligible member's and retired
24    member's premiums for health insurance coverage for  enrolled
25    dependents as provided by Section 9.  The State shall pay the
26    cost of the basic program of group health benefits only after
27    benefits  are  reduced  by  the amount of benefits covered by
28    Medicare for all members and dependents who are eligible  for
29    benefits  under  Social  Security  or the Railroad Retirement
30    system or  who  had  sufficient  Medicare-covered  government
31    employment,  except  that  such  reduction  in benefits shall
32    apply only to those members  and  dependents  who  (1)  first
33    become  eligible  for such Medicare coverage on or after July
 
HB0521 Engrossed            -14-               LRB9204399JSpc
 1    1, 1992; or (2) are Medicare-eligible members  or  dependents
 2    of  a  local government unit which began participation in the
 3    program on or after July 1, 1992; or (3) remain eligible for,
 4    but no longer receive Medicare coverage which they  had  been
 5    receiving  on  or  after  July  1,  1992.  The Department may
 6    determine the aggregate level of the State's contribution  on
 7    the  basis  of  actual  cost of medical services adjusted for
 8    age, sex or geographic or other  demographic  characteristics
 9    which affect the costs of such programs.
10        The  cost  of participation in the basic program of group
11    health benefits for the dependent or survivor of a living  or
12    deceased  retired  employee  who was formerly employed by the
13    University of Illinois in the Cooperative  Extension  Service
14    and would be an annuitant but for the fact that he or she was
15    made  ineligible  to  participate  in  the State Universities
16    Retirement System by clause (4) of subsection (a) of  Section
17    15-107 of the Illinois Pension Code shall not be greater than
18    the  cost of participation that would otherwise apply to that
19    dependent or survivor if he or  she  were  the  dependent  or
20    survivor   of  an  annuitant  under  the  State  Universities
21    Retirement System.
22        (a-1)  Beginning January 1, 1998,  for  each  person  who
23    becomes  a  new  SERS annuitant and participates in the basic
24    program of group health benefits, the State shall  contribute
25    toward  the  cost of the annuitant's coverage under the basic
26    program of group health benefits an amount  equal  to  5%  of
27    that cost for each full year of creditable service upon which
28    the  annuitant's retirement annuity is based, up to a maximum
29    of 100% for an annuitant with 20 or more years of  creditable
30    service.  The remainder of the cost of a new SERS annuitant's
31    coverage  under  the  basic  program of group health benefits
32    shall be the responsibility of the annuitant.
33        (a-2)  Beginning January 1, 1998,  for  each  person  who
34    becomes  a  new  SERS  survivor and participates in the basic
 
HB0521 Engrossed            -15-               LRB9204399JSpc
 1    program of group health benefits, the State shall  contribute
 2    toward  the  cost  of the survivor's coverage under the basic
 3    program of group health benefits an amount  equal  to  5%  of
 4    that  cost  for  each full year of the deceased employee's or
 5    deceased  annuitant's  creditable  service   in   the   State
 6    Employees'  Retirement  System  of  Illinois  on  the date of
 7    death, up to a maximum of 100% for a survivor of an  employee
 8    or  annuitant  with  20  or more years of creditable service.
 9    The remainder of the cost of the new SERS survivor's coverage
10    under the basic program of group health benefits shall be the
11    responsibility of the survivor.
12        (a-3)  Beginning January 1, 1998,  for  each  person  who
13    becomes  a  new  SURS annuitant and participates in the basic
14    program of group health benefits, the State shall  contribute
15    toward  the  cost of the annuitant's coverage under the basic
16    program of group health benefits an amount  equal  to  5%  of
17    that cost for each full year of creditable service upon which
18    the  annuitant's retirement annuity is based, up to a maximum
19    of 100% for an annuitant with 20 or more years of  creditable
20    service.  The remainder of the cost of a new SURS annuitant's
21    coverage  under  the  basic  program of group health benefits
22    shall be the responsibility of the annuitant.
23        (a-4)  (Blank).
24        (a-5)  Beginning January 1, 1998,  for  each  person  who
25    becomes  a  new  SURS  survivor and participates in the basic
26    program of group health benefits, the State shall  contribute
27    toward  the  cost  of the survivor's coverage under the basic
28    program of group health benefits an amount  equal  to  5%  of
29    that  cost  for  each full year of the deceased employee's or
30    deceased  annuitant's  creditable  service   in   the   State
31    Universities  Retirement System on the date of death, up to a
32    maximum of 100% for a survivor of an  employee  or  annuitant
33    with  20  or more years of creditable service.  The remainder
34    of the cost of the new SURS  survivor's  coverage  under  the
 
HB0521 Engrossed            -16-               LRB9204399JSpc
 1    basic   program   of  group  health  benefits  shall  be  the
 2    responsibility of the survivor.
 3        (a-6)  Beginning  July  1,  1998,  for  each  person  who
 4    becomes a new TRS State annuitant  and  participates  in  the
 5    basic  program  of  group  health  benefits,  the State shall
 6    contribute toward the cost of the annuitant's coverage  under
 7    the basic program of group health benefits an amount equal to
 8    5% of that cost for each full year of creditable service as a
 9    teacher  as  defined in paragraph (2), (3), or (5) of Section
10    16-106  of  the  Illinois  Pension  Code   upon   which   the
11    annuitant's  retirement  annuity is based, up to a maximum of
12    100%; except that the State contribution shall be  12.5%  per
13    year  (rather  than  5%)  for  each  full  year of creditable
14    service as a regional superintendent  or  assistant  regional
15    superintendent  of  schools.   The remainder of the cost of a
16    new TRS State annuitant's coverage under the basic program of
17    group health benefits shall  be  the  responsibility  of  the
18    annuitant.
19        (a-7)  Beginning  July  1,  1998,  for  each  person  who
20    becomes  a  new  TRS  State  survivor and participates in the
21    basic program of  group  health  benefits,  the  State  shall
22    contribute  toward  the cost of the survivor's coverage under
23    the basic program of group health benefits an amount equal to
24    5% of that cost for each full year of the deceased employee's
25    or deceased annuitant's creditable service as  a  teacher  as
26    defined  in  paragraph  (2), (3), or (5) of Section 16-106 of
27    the Illinois Pension Code on the  date  of  death,  up  to  a
28    maximum  of 100%; except that the State contribution shall be
29    12.5% per year (rather than 5%) for each  full  year  of  the
30    deceased   employee's   or  deceased  annuitant's  creditable
31    service as a regional superintendent  or  assistant  regional
32    superintendent  of  schools. The remainder of the cost of the
33    new TRS State survivor's coverage under the basic program  of
34    group  health  benefits  shall  be  the responsibility of the
 
HB0521 Engrossed            -17-               LRB9204399JSpc
 1    survivor.
 2        (a-8)  A new SERS annuitant, new SERS survivor, new  SURS
 3    annuitant, new SURS survivor, new TRS State annuitant, or new
 4    TRS  State  survivor  may  waive or terminate coverage in the
 5    program of group health  benefits.   Any  such  annuitant  or
 6    survivor  who has waived or terminated coverage may enroll or
 7    re-enroll in the program of group health benefits only during
 8    the annual  benefit  choice  period,  as  determined  by  the
 9    Director; except that in the event of termination of coverage
10    due  to nonpayment of premiums, the annuitant or survivor may
11    not re-enroll in the program.
12        (a-9)  No later than May 1 of  each  calendar  year,  the
13    Director  of  Central  Management  Services  shall certify in
14    writing to the Executive Secretary of  the  State  Employees'
15    Retirement  System  of  Illinois  the amounts of the Medicare
16    supplement health care premiums and the amounts of the health
17    care premiums for all other retirees  who  are  not  Medicare
18    eligible.
19        A  separate  calculation  of  the premiums based upon the
20    actual cost of each health care plan shall be so certified.
21        The Director of Central Management Services shall provide
22    to the Executive Secretary of the State Employees' Retirement
23    System of Illinois such information,  statistics,  and  other
24    data  as  he or she may require to review the premium amounts
25    certified by the Director of Central Management Services.
26        (b)  State employees who become eligible for this program
27    on or after January 1, 1980 in positions  normally  requiring
28    actual performance of duty not less than 1/2 of a normal work
29    period  but  not equal to that of a normal work period, shall
30    be  given  the  option  of  participating  in  the  available
31    program. If the employee elects  coverage,  the  State  shall
32    contribute  on  behalf  of  such  employee to the cost of the
33    employee's benefit and any applicable  dependent  supplement,
34    that  sum  which bears the same percentage as that percentage
 
HB0521 Engrossed            -18-               LRB9204399JSpc
 1    of time the employee regularly works when compared to  normal
 2    work period.
 3        (c)  The  basic  non-contributory coverage from the basic
 4    program of group health benefits shall be continued for  each
 5    employee  not in pay status or on active service by reason of
 6    (1) leave of absence due to illness or injury, (2) authorized
 7    educational leave of absence  or  sabbatical  leave,  or  (3)
 8    military  leave  with  pay  and benefits. This coverage shall
 9    continue until expiration of authorized leave and  return  to
10    active  service, but not to exceed 24 months for leaves under
11    item (1) or (2). This 24-month limitation and the requirement
12    of returning to active service shall  not  apply  to  persons
13    receiving  ordinary  or  accidental  disability  benefits  or
14    retirement  benefits through the appropriate State retirement
15    system  or  benefits  under  the  Workers'  Compensation   or
16    Occupational Disease Act.
17        (d)  The   basic  group  life  insurance  coverage  shall
18    continue, with full State contribution, where such person  is
19    (1)  absent  from  active  service  by  reason  of disability
20    arising from any cause  other  than  self-inflicted,  (2)  on
21    authorized  educational leave of absence or sabbatical leave,
22    or (3) on military leave with pay and benefits.
23        (e)  Where the person is in non-pay status for  a  period
24    in  excess  of  30 days or on leave of absence, other than by
25    reason of disability, educational  or  sabbatical  leave,  or
26    military  leave  with  pay  and  benefits,  such  person  may
27    continue  coverage  only  by making personal payment equal to
28    the amount normally contributed by the State on such person's
29    behalf. Such payments and  coverage  may  be  continued:  (1)
30    until  such  time  as the person returns to a status eligible
31    for coverage at State expense, but not to exceed  24  months,
32    (2)  until  such person's employment or annuitant status with
33    the State is terminated, or (3) for a  maximum  period  of  4
34    years for members on military leave with pay and benefits and
 
HB0521 Engrossed            -19-               LRB9204399JSpc
 1    military  leave  without  pay  and benefits (exclusive of any
 2    additional service imposed pursuant to law).
 3        (f)  The Department shall  establish by rule  the  extent
 4    to which other employee benefits will continue for persons in
 5    non-pay status or who are not in active service.
 6        (g)  The  State  shall  not  pay  the  cost  of the basic
 7    non-contributory group  life  insurance,  program  of  health
 8    benefits  and  other  employee  benefits  for members who are
 9    survivors as defined by paragraphs (1) and (2) of  subsection
10    (q)  of  Section  3  of  this Act.  The costs of benefits for
11    these survivors shall be paid by  the  survivors  or  by  the
12    University  of Illinois Cooperative Extension Service, or any
13    combination thereof. However, the State shall pay the  amount
14    of  the  reduction  in  the  cost  of  participation, if any,
15    resulting from the amendment to subsection (a) made  by  this
16    amendatory Act of the 91st General Assembly.
17        (h)  Those   persons   occupying   positions   with   any
18    department  as a result of emergency appointments pursuant to
19    Section 8b.8 of the Personnel Code  who  are  not  considered
20    employees  under  this  Act  shall  be  given  the  option of
21    participating in the programs of group life insurance, health
22    benefits and other employee benefits.  Such persons  electing
23    coverage  may participate only by making payment equal to the
24    amount  normally  contributed  by  the  State  for  similarly
25    situated employees.  Such amounts shall be determined by  the
26    Director.   Such payments and coverage may be continued until
27    such time as the person becomes an employee pursuant to  this
28    Act or such person's appointment is terminated.
29        (i)  Any  unit  of  local  government within the State of
30    Illinois may apply to the Director  to  have  its  employees,
31    annuitants,   and  their  dependents  provided  group  health
32    coverage  under  this  Act  on  a  non-insured   basis.    To
33    participate,  a unit of local government must agree to enroll
34    all of its employees, who may select  coverage  under  either
 
HB0521 Engrossed            -20-               LRB9204399JSpc
 1    the  State group health benefits plan or a health maintenance
 2    organization  that  has  contracted  with  the  State  to  be
 3    available as a health care provider for employees as  defined
 4    in  this  Act.   A  unit  of  local government must remit the
 5    entire cost of  providing  coverage  under  the  State  group
 6    health   benefits  plan  or,  for  coverage  under  a  health
 7    maintenance  organization,  an  amount  determined   by   the
 8    Director  based  on  an  analysis of the sex, age, geographic
 9    location, or other relevant  demographic  variables  for  its
10    employees, except that the unit of local government shall not
11    be  required to enroll those of its employees who are covered
12    spouses or dependents under this plan or another group policy
13    or  plan  providing  health  benefits  as  long  as  (1)   an
14    appropriate  official  from  the  unit  of  local  government
15    attests  that  each employee not enrolled is a covered spouse
16    or dependent under this plan or another group policy or plan,
17    and (2) at least 85% of the employees are  enrolled  and  the
18    unit  of local government remits the entire cost of providing
19    coverage to those  employees,  except  that  a  participating
20    school  district  must  have  enrolled  at  least  85% of its
21    full-time employees who have not waived  coverage  under  the
22    district's  group health plan by participating in a component
23    of the district's  cafeteria  plan.  A  participating  school
24    district  is  not required to enroll a full-time employee who
25    has  waived  coverage  under  the  district's  health   plan,
26    provided  that an appropriate official from the participating
27    school district  attests  that  the  full-time  employee  has
28    waived  coverage  by  participating  in  a  component  of the
29    district's  cafeteria  plan.   For  the  purposes   of   this
30    subsection,  "participating  school district" includes a unit
31    of local government whose primary  purpose  is  education  as
32    defined by the Department's rules.
33        Employees of a participating unit of local government who
34    are  not  enrolled due to coverage under another group health
 
HB0521 Engrossed            -21-               LRB9204399JSpc
 1    policy or plan may enroll in the event of a qualifying change
 2    in  status,  special  enrollment,  special  circumstance   as
 3    defined  by the Director, or during the annual Benefit Choice
 4    Period. A participating unit of  local  government  may  also
 5    elect  to  cover its annuitants.  Dependent coverage shall be
 6    offered on an optional basis, with the costs paid by the unit
 7    of local government, its employees, or  some  combination  of
 8    the  two  as determined by the unit of local government.  The
 9    unit of local government  shall  be  responsible  for  timely
10    collection and transmission of dependent premiums.
11        The  Director  shall  annually determine monthly rates of
12    payment, subject to the following constraints:
13             (1)  In the first year of coverage, the rates  shall
14        be   equal  to  the  amount  normally  charged  to  State
15        employees for elected optional coverages or for  enrolled
16        dependents  coverages or other contributory coverages, or
17        contributed by the State for basic insurance coverages on
18        behalf of its employees, adjusted for differences between
19        State employees and employees of the local government  in
20        age,   sex,   geographic   location   or  other  relevant
21        demographic variables, plus an amount sufficient  to  pay
22        for  the  additional  administrative  costs  of providing
23        coverage to employees of the unit of local government and
24        their dependents.
25             (2)  In subsequent years, a further adjustment shall
26        be  made  to  reflect  the  actual  prior  years'  claims
27        experience  of  the  employees  of  the  unit  of   local
28        government.
29        In  the  case  of  coverage of local government employees
30    under a health maintenance organization, the  Director  shall
31    annually  determine  for  each  participating  unit  of local
32    government the maximum monthly amount the unit may contribute
33    toward that coverage, based on an analysis of  (i)  the  age,
34    sex,  geographic  location,  and  other  relevant demographic
 
HB0521 Engrossed            -22-               LRB9204399JSpc
 1    variables of the unit's employees and (ii) the cost to  cover
 2    those  employees  under the State group health benefits plan.
 3    The Director may  similarly  determine  the  maximum  monthly
 4    amount  each  unit  of local government may contribute toward
 5    coverage  of  its  employees'  dependents  under   a   health
 6    maintenance organization.
 7        Monthly  payments  by the unit of local government or its
 8    employees  for  group  health   benefits   plan   or   health
 9    maintenance  organization  coverage shall be deposited in the
10    Local Government Health Insurance Reserve  Fund.   The  Local
11    Government   Health   Insurance   Reserve  Fund  shall  be  a
12    continuing fund not subject to fiscal year limitations.   All
13    expenditures  from  this  fund shall be used for payments for
14    health care benefits for local government, domestic  violence
15    shelter  or  service,  and rehabilitation facility employees,
16    annuitants, and dependents, and to reimburse  the  Department
17    or  its  administrative service organization for all expenses
18    incurred in the administration of benefits.  No  other  State
19    funds may be used for these purposes.
20        A  local government employer's participation or desire to
21    participate in a program created under this subsection  shall
22    not   limit   that   employer's  duty  to  bargain  with  the
23    representative of  any  collective  bargaining  unit  of  its
24    employees.
25        (j)  Any  rehabilitation  facility  within  the  State of
26    Illinois may apply to the Director  to  have  its  employees,
27    annuitants,  and  their  eligible  dependents  provided group
28    health coverage under this Act on  a  non-insured  basis.  To
29    participate,  a  rehabilitation facility must agree to enroll
30    all of its employees and remit the entire cost  of  providing
31    such   coverage   for   its   employees,   except   that  the
32    rehabilitation facility shall not be required to enroll those
33    of its employees who are covered spouses or dependents  under
34    this  plan  or  another group policy or plan providing health
 
HB0521 Engrossed            -23-               LRB9204399JSpc
 1    benefits as long as (1)  an  appropriate  official  from  the
 2    rehabilitation   facility  attests  that  each  employee  not
 3    enrolled is a covered spouse or dependent under this plan  or
 4    another  group  policy  or  plan, and (2) at least 85% of the
 5    employees are enrolled and the rehabilitation facility remits
 6    the entire cost of providing  coverage  to  those  employees.
 7    Employees  of a participating rehabilitation facility who are
 8    not enrolled due  to  coverage  under  another  group  health
 9    policy or plan may enroll in the event of a qualifying change
10    in   status,  special  enrollment,  special  circumstance  as
11    defined by the Director, or during the annual Benefit  Choice
12    Period.   A  participating  rehabilitation  facility may also
13    elect to cover its annuitants. Dependent  coverage  shall  be
14    offered  on  an  optional  basis,  with the costs paid by the
15    rehabilitation facility, its employees, or  some  combination
16    of  the  2  as determined by the rehabilitation facility. The
17    rehabilitation  facility  shall  be  responsible  for  timely
18    collection and transmission of dependent premiums.
19        The Director shall annually determine quarterly rates  of
20    payment, subject to the following constraints:
21             (1)  In  the first year of coverage, the rates shall
22        be  equal  to  the  amount  normally  charged  to   State
23        employees  for elected optional coverages or for enrolled
24        dependents coverages or other contributory  coverages  on
25        behalf of its employees, adjusted for differences between
26        State  employees  and  employees  of  the  rehabilitation
27        facility  in  age,  sex,  geographic  location  or  other
28        relevant demographic variables, plus an amount sufficient
29        to   pay  for  the  additional  administrative  costs  of
30        providing coverage to  employees  of  the  rehabilitation
31        facility and their dependents.
32             (2)  In subsequent years, a further adjustment shall
33        be  made  to  reflect  the  actual  prior  years'  claims
34        experience   of   the  employees  of  the  rehabilitation
 
HB0521 Engrossed            -24-               LRB9204399JSpc
 1        facility.
 2        Monthly payments by the rehabilitation  facility  or  its
 3    employees for group health benefits shall be deposited in the
 4    Local Government Health Insurance Reserve Fund.
 5        (k)  Any  domestic violence shelter or service within the
 6    State of Illinois may apply  to  the  Director  to  have  its
 7    employees,  annuitants,  and  their dependents provided group
 8    health coverage under this Act on a  non-insured  basis.   To
 9    participate,  a  domestic  violence  shelter  or service must
10    agree to enroll all of its employees and pay the entire  cost
11    of   providing   such   coverage   for   its   employees.   A
12    participating domestic violence shelter  may  also  elect  to
13    cover its annuitants.  Dependent coverage shall be offered on
14    an optional basis, with employees, or some combination of the
15    2  as determined by the domestic violence shelter or service.
16    The domestic violence shelter or service shall be responsible
17    for timely collection and transmission of dependent premiums.
18        The Director shall annually determine rates  of  payment,
19    subject to the following constraints:
20             (1)  In  the first year of coverage, the rates shall
21        be  equal  to  the  amount  normally  charged  to   State
22        employees  for elected optional coverages or for enrolled
23        dependents coverages or other contributory  coverages  on
24        behalf of its employees, adjusted for differences between
25        State  employees  and  employees of the domestic violence
26        shelter or service in age, sex,  geographic  location  or
27        other  relevant  demographic  variables,  plus  an amount
28        sufficient to pay for the additional administrative costs
29        of  providing  coverage  to  employees  of  the  domestic
30        violence shelter or service and their dependents.
31             (2)  In subsequent years, a further adjustment shall
32        be  made  to  reflect  the  actual  prior  years'  claims
33        experience of the  employees  of  the  domestic  violence
34        shelter or service.
 
HB0521 Engrossed            -25-               LRB9204399JSpc
 1        Monthly  payments  by  the  domestic  violence shelter or
 2    service or its employees for group health insurance shall  be
 3    deposited  in  the  Local Government Health Insurance Reserve
 4    Fund.
 5        (k-5)  Any  qualified  small  business  or  self-employed
 6    person within the State of Illinois may apply to the Director
 7    to have  its  employees,  annuitants,  and  their  dependents
 8    provided   group   health   coverage  under  this  Act  on  a
 9    non-insured  basis.   To  participate,  a   qualified   small
10    business  or self-employed person must agree to enroll all of
11    its employees and pay  the  entire  cost  of  providing  such
12    coverage  for its employees.  A participating qualified small
13    business or self-employed person may also elect to cover  its
14    annuitants.   Dependent  coverage  shall  be  offered  on  an
15    optional  basis, with employees, or some combination of the 2
16    as  determined   by   the   qualified   small   business   or
17    self-employed   person.   The  qualified  small  business  or
18    self-employed  person  shall  be   responsible   for   timely
19    collection and transmission of dependent premiums.
20        The  Director  shall annually determine rates of payment,
21    subject to the following constraints:
22             (1)  In the first year of coverage, the rates  shall
23        be   equal  to  the  amount  normally  charged  to  State
24        employees for elected optional coverages or for  enrolled
25        dependents  coverages  or other contributory coverages on
26        behalf of its employees, adjusted for differences between
27        State employees and  employees  of  the  qualified  small
28        business  or self-employed person in age, sex, geographic
29        location or other relevant demographic variables, plus an
30        amount   sufficient   to   pay   for    the    additional
31        administrative  costs  of providing coverage to employees
32        of the qualified small business or  self-employed  person
33        and their dependents.
34             (2)  In subsequent years, a further adjustment shall
 
HB0521 Engrossed            -26-               LRB9204399JSpc
 1        be  made  to  reflect  the  actual  prior  years'  claims
 2        experience  of  the  employees  of  the  qualified  small
 3        business or self-employed person.
 4        Monthly  payments  by  the  qualified  small  business or
 5    self-employed person for  group  health  insurance  shall  be
 6    deposited  into  the Small Employers Health Insurance Reserve
 7    Fund.  The Small  Employers  Health  Insurance  Reserve  Fund
 8    shall  be  a  continuing  fund  not  subject  to  fiscal year
 9    limitations.  All expenditures from this fund shall  be  used
10    for  payments  for  health  care  benefits  for self-employed
11    persons and employees of qualified small businesses and their
12    annuitants and dependents and to reimburse the Department  or
13    its  administrative  service  organization  for  all expenses
14    incurred in the administration of benefits.  No  other  State
15    funds may be used for these purposes.
16        (l)  A  public  community  college  or  entity  organized
17    pursuant to the Public Community College Act may apply to the
18    Director  initially to have only annuitants not covered prior
19    to July 1, 1992 by the district's health plan provided health
20    coverage  under  this  Act  on  a  non-insured  basis.    The
21    community   college   must   execute  a  2-year  contract  to
22    participate  in  the  Local  Government  Health   Plan.   Any
23    annuitant  may  enroll in the event of a qualifying change in
24    status, special enrollment, special circumstance  as  defined
25    by the Director, or during the annual Benefit Choice Period.
26        The  Director  shall  annually determine monthly rates of
27    payment subject to  the  following  constraints:   for  those
28    community  colleges with annuitants only enrolled, first year
29    rates shall be equal to the average cost to cover claims  for
30    a   State   member   adjusted   for   demographics,  Medicare
31    participation, and other factors; and in the second  year,  a
32    further  adjustment  of  rates  shall  be made to reflect the
33    actual  first  year's  claims  experience  of   the   covered
34    annuitants.
 
HB0521 Engrossed            -27-               LRB9204399JSpc
 1        (l-5)  The    provisions   of   subsection   (l)   become
 2    inoperative on July 1, 1999.
 3        (m)  The Director shall adopt any rules deemed  necessary
 4    for implementation of this amendatory Act of 1989 (Public Act
 5    86-978).
 6    (Source:  P.A.  90-65,  eff.  7-7-97;  90-582,  eff. 5-27-98;
 7    90-655, eff. 7-30-98;  91-280,  eff.  7-23-99;  91-311;  eff.
 8    7-29-99;  91-357, eff. 7-29-99; 91-390, eff. 7-30-99; 91-395,
 9    eff. 7-30-99; 91-617, eff. 8-19-99; revised 8-31-99.)

10        (5 ILCS 375/13.2) (from Ch. 127, par. 533.2)
11        Sec. 13.2. Insurance  reserve  funds;  investments.   All
12    amounts  held in the Health Insurance Reserve Fund, the Group
13    Insurance Premium Fund, the Small Employers Health  Insurance
14    Reserve  Fund,  and  the  Local  Government  Health Insurance
15    Reserve Fund shall be invested, at  interest,  by  the  State
16    Treasurer.   The  investments  shall  be  subject  to  terms,
17    conditions,  and  limitations imposed by the laws of Illinois
18    on State funds.  All  income  derived  from  the  investments
19    shall accrue and be deposited to the respective funds no less
20    frequently  than  quarterly.   The  Health  Insurance Reserve
21    Fund, the Small Employers Health Insurance Reserve Fund,  and
22    the  Local  Government Health Insurance Reserve Fund shall be
23    administered by the Director.
24    (Source: P.A. 91-390, eff. 7-30-99.)

25        (5 ILCS 375/15) (from Ch. 127, par. 535)
26        Sec. 15. Administration; rules; audit; review.
27        (a)  The Director shall administer  this  Act  and  shall
28    prescribe such rules and regulations as are necessary to give
29    full effect to the purposes of this Act.
30        (b)  These  rules  may  fix  reasonable standards for the
31    group life  and  group  health  programs  and  other  benefit
32    programs  offered  under  this  Act,  and for the contractors
 
HB0521 Engrossed            -28-               LRB9204399JSpc
 1    providing them.
 2        (c)  These rules shall specify that covered and  optional
 3    medical  services of the program are services provided within
 4    the  scope  of  their  licenses  by  practitioners   in   all
 5    categories  licensed  under  the Medical Practice Act of 1987
 6    and shall provide that all eligible persons be fully informed
 7    of this specification.
 8        (d)  These rules shall establish eligibility requirements
 9    for members and dependents as may be necessary to  supplement
10    or clarify requirements contained in this Act.
11        (e)  Each  affected  department  of  the State, the State
12    Universities  Retirement  System,  the  Teachers'  Retirement
13    System, and each qualified local  government,  rehabilitation
14    facility,  or  domestic  violence  shelter  or service, small
15    business, or self-employed person shall  keep  such  records,
16    make  such  certifications,  and  furnish  the  Director such
17    information as may be necessary  for  the  administration  of
18    this  Act,  including information concerning number and total
19    amounts of payroll of employees of  the  department  who  are
20    paid from trust funds or federal funds.
21        (f)  Each   member,   each   community   college  benefit
22    recipient to whom this Act  applies,  and  each  TRS  benefit
23    recipient   to  whom  this  Act  applies  shall  furnish  the
24    Director, in such form as may be  required,  any  information
25    that  may  be  necessary  to  enroll  such  member or benefit
26    recipient and,  if  applicable,  his  or  her  dependents  or
27    dependent beneficiaries under the programs or plan, including
28    such  data  as  may  be  required  to  allow  the Director to
29    accumulate  statistics  on  data   normally   considered   in
30    actuarial  studies  of  employee  groups.   Information about
31    community college benefit recipients  and  community  college
32    dependent  beneficiaries shall be furnished through the State
33    Universities  Retirement  System.   Information   about   TRS
34    benefit  recipients  and TRS dependent beneficiaries shall be
 
HB0521 Engrossed            -29-               LRB9204399JSpc
 1    furnished through the Teachers' Retirement System.
 2        (g)  There shall be audits and reports  on  the  programs
 3    authorized  and  established  by  this  Act  prepared  by the
 4    Director with the  assistance  of  a  qualified,  independent
 5    accounting  firm.   The  reports shall provide information on
 6    the experience, and administrative effectiveness and adequacy
 7    of the program including, when applicable, recommendations on
 8    up-grading of benefits and improvement of the program.
 9        (h)  Any final order,  decision  or  other  determination
10    made, issued or executed by the Director under the provisions
11    of  this  Act  whereby  any contractor or person is aggrieved
12    shall be subject to review in accordance with the  provisions
13    of  the  Administrative  Review  Law  and  all amendments and
14    modifications  thereof,  and  the  rules   adopted   pursuant
15    thereto,  shall  apply  to and govern all proceedings for the
16    judicial review of  final  administrative  decisions  of  the
17    Director.
18    (Source: P.A. 90-497, eff. 8-18-97; 91-390, eff. 7-30-99.)

19        Section 10.  The State Finance Act is amended by changing
20    Section 25 as follows:

21        (30 ILCS 105/25) (from Ch. 127, par. 161)
22        Sec. 25.  Fiscal year limitations.
23        (a)  All    appropriations   shall   be   available   for
24    expenditure for the fiscal year or for a lesser period if the
25    Act making that appropriation so specifies.  A deficiency  or
26    emergency  appropriation  shall  be available for expenditure
27    only through June 30 of the year when  the  Act  making  that
28    appropriation is enacted unless that Act otherwise provides.
29        (b)  Outstanding  liabilities as of June 30, payable from
30    appropriations which have otherwise expired, may be paid  out
31    of  the  expiring  appropriations  during  the 2-month period
32    ending at the close of business on August  31.   Any  service
 
HB0521 Engrossed            -30-               LRB9204399JSpc
 1    involving  professional  or  artistic  skills or any personal
 2    services by an employee  whose  compensation  is  subject  to
 3    income tax withholding must be performed as of June 30 of the
 4    fiscal  year  in  order  to  be  considered  an  "outstanding
 5    liability as of June 30" that is thereby eligible for payment
 6    out of the expiring appropriation.
 7        However,  payment  of  tuition reimbursement claims under
 8    Section 14-7.03 or 18-3 of the School Code may be made by the
 9    State Board of Education from its  appropriations  for  those
10    respective  purposes  for  any  fiscal  year, even though the
11    claims reimbursed by the payment may be  claims  attributable
12    to  a  prior  fiscal  year,  and  payments may be made at the
13    direction of the State Superintendent of Education  from  the
14    fund  from  which the appropriation is made without regard to
15    any fiscal year limitations.
16        Medical  payments  may  be  made  by  the  Department  of
17    Veterans' Affairs from its appropriations for those  purposes
18    for  any  fiscal  year,  without  regard to the fact that the
19    medical services being compensated for by  such  payment  may
20    have been rendered in a prior fiscal year.
21        Medical  payments may be made by the Department of Public
22    Aid and child care payments may be made by the Department  of
23    Human Services (as successor to the Department of Public Aid)
24    from  appropriations  for those purposes for any fiscal year,
25    without regard to the fact that the  medical  or  child  care
26    services  being compensated for by such payment may have been
27    rendered in a prior fiscal year; and payments may be made  at
28    the   direction  of  the  Department  of  Central  Management
29    Services from the Health Insurance Reserve  Fund,  the  Small
30    Employers  Health  Insurance  Reserve  Fund,  and  the  Local
31    Government  Health  Insurance  Reserve Fund without regard to
32    any fiscal year limitations.
33        Additionally, payments may be made by the  Department  of
34    Human  Services  from  its appropriations, or any other State
 
HB0521 Engrossed            -31-               LRB9204399JSpc
 1    agency from its  appropriations  with  the  approval  of  the
 2    Department of Human Services, from the Immigration Reform and
 3    Control   Fund   for  purposes  authorized  pursuant  to  the
 4    Immigration Reform and Control Act of 1986, without regard to
 5    any fiscal year limitations.
 6        (c)  Further, payments may be made by the  Department  of
 7    Public Health and the Department of Human Services (acting as
 8    successor  to  the  Department  of  Public  Health  under the
 9    Department of  Human  Services  Act)  from  their  respective
10    appropriations for grants for medical care to or on behalf of
11    persons   suffering   from  chronic  renal  disease,  persons
12    suffering from hemophilia, rape victims,  and  premature  and
13    high-mortality  risk infants and their mothers and for grants
14    for supplemental food  supplies  provided  under  the  United
15    States  Department of Agriculture Women, Infants and Children
16    Nutrition Program, for any fiscal year without regard to  the
17    fact  that the services being compensated for by such payment
18    may have been rendered in a prior fiscal year.
19        (d)  The Department of Public Health and  the  Department
20    of  Human  Services (acting as successor to the Department of
21    Public Health under the Department  of  Human  Services  Act)
22    shall  each  annually submit to the State Comptroller, Senate
23    President, Senate Minority  Leader,  Speaker  of  the  House,
24    House  Minority  Leader,  and  the  respective  Chairmen  and
25    Minority  Spokesmen  of  the Appropriations Committees of the
26    Senate and the House, on or before December 31, a  report  of
27    fiscal  year  funds  used to pay for services provided in any
28    prior fiscal year.  This report shall document by program  or
29    service  category  those  expenditures from the most recently
30    completed fiscal year used to pay for  services  provided  in
31    prior fiscal years.
32        (e)  The  Department  of Public Aid and the Department of
33    Human Services (acting as  successor  to  the  Department  of
34    Public   Aid)   shall  each  annually  submit  to  the  State
 
HB0521 Engrossed            -32-               LRB9204399JSpc
 1    Comptroller,  Senate  President,  Senate   Minority   Leader,
 2    Speaker  of  the House, House Minority Leader, the respective
 3    Chairmen  and  Minority  Spokesmen  of   the   Appropriations
 4    Committees of the Senate and the House, on or before November
 5    30,  a  report  that  shall  document  by  program or service
 6    category those expenditures from the most recently  completed
 7    fiscal  year  used  to pay for (i) services provided in prior
 8    fiscal years and (ii) services for which claims were received
 9    in prior fiscal years.
10        (f)  The Department of Human Services  (as  successor  to
11    the  Department  of  Public Aid) shall annually submit to the
12    State Comptroller, Senate President, Senate Minority  Leader,
13    Speaker   of  the  House,  House  Minority  Leader,  and  the
14    respective   Chairmen   and   Minority   Spokesmen   of   the
15    Appropriations Committees of the Senate and the House, on  or
16    before December 31, a report of fiscal year funds used to pay
17    for  services (other than medical care) provided in any prior
18    fiscal year.   This  report  shall  document  by  program  or
19    service  category  those  expenditures from the most recently
20    completed fiscal year used to pay for  services  provided  in
21    prior fiscal years.
22        (g)  In  addition,  each  annual  report  required  to be
23    submitted by the Department of Public  Aid  under  subsection
24    (e)  shall  include the following information with respect to
25    the State's Medicaid program:
26             (1)  Explanations  of  the  exact  causes   of   the
27        variance between the previous year's estimated and actual
28        liabilities.
29             (2)  Factors  affecting  the  Department  of  Public
30        Aid's  liabilities,  including but not limited to numbers
31        of aid recipients, levels of medical service  utilization
32        by  aid  recipients, and inflation in the cost of medical
33        services.
34             (3)  The results  of  the  Department's  efforts  to
 
HB0521 Engrossed            -33-               LRB9204399JSpc
 1        combat fraud and abuse.
 2        (h)  As  provided  in  Section  4 of the General Assembly
 3    Compensation Act, any utility bill for service provided to  a
 4    General  Assembly  member's  district  office  for  a  period
 5    including  portions of 2 consecutive fiscal years may be paid
 6    from funds appropriated for such expenditure in either fiscal
 7    year.
 8        (i)  An agency which administers a fund classified by the
 9    Comptroller as an internal service fund may issue rules for:
10             (1)  billing  user  agencies  in  advance  based  on
11        estimated charges for goods or services;
12             (2)  issuing credits during  the  subsequent  fiscal
13        year  for  all  user  agency payments received during the
14        prior fiscal year which  were  in  excess  of  the  final
15        amounts owed by the user agency for that period; and
16             (3)  issuing  catch-up  billings  to  user  agencies
17        during  the  subsequent fiscal year for amounts remaining
18        due when payments received from the  user  agency  during
19        the  prior  fiscal  year  were less than the total amount
20        owed for that period.
21    User agencies are authorized to  reimburse  internal  service
22    funds  for  catch-up billings by vouchers drawn against their
23    respective appropriations for the fiscal year  in  which  the
24    catch-up billing was issued.
25    (Source:  P.A.  89-235,  eff.  8-4-95;  89-507,  eff. 7-1-97;
26    89-511,  eff.  1-1-97;  90-14,  eff.  7-1-97;  90-168,   eff.
27    7-23-97.)

28        Section  99.  Effective  date.   This Act takes effect on
29    January 1, 2003.

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